Ir. Muhril Ardiansyah, M.Sc., Ph.D.

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Ir. Muhril Ardiansyah, M.Sc., Ph.D.

• Email uhsyah_at_yahoo.com

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Ir. Muhril Ardiansyah, M.Sc., Ph.D.

• Ir. (IPB, Bogor, Indonesia 1985-1990).
• M.Sc. (Oklahoma State University,
• Stillwater, Oklahoma, USA 1991-1993).
• Ph.D. (Oklahoma State University,
• Stillwater, Oklahoma, USA 1996-2001).

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Ir. Muhril Ardiansyah, M.Sc., Ph.D.

• Lecturer at
• Bina Nusantara University, Jakarta, Indonesia.
• Pelita Harapan University, Jakarta, Indonesia.
• Sahid University, Jakarta, Indonesia.
• Indonusa Esa Unggul University, Jakarta,
• Indonesia.
• Paramadina University, Jakarta, Indonesia.
• Fashion Design Institute, Jakarta, Indonesia.
• STIE Gandhi, Jakarta, Indonesia.

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Ir. Muhril Ardiansyah, M.Sc., Ph.D.

• Consultant and/or Researcher at
• INDEF.
• STRATEGY.
• SCORE.
• GLOBAL.

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Ir. Muhril Ardiansyah, M.Sc., Ph.D.

• Director and Owner
• Muhril Ardiansyahs Consulting,
• Educating Training.

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Ir. Muhril Ardiansyah, M.Sc., Ph.D.

• Manager Marketing
• Beeyon-PT Dewi Fortuna
• Komunikasi.

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Blog

• http//hrpa.wordpress.com/

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Human ResourcePlanning Auditing(HRPA)
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After Studying this materials, We should be able
to such as

• 1. Explain the main techniques used in
  employment planning, forecasting and auditing.
• 2. List and discuss the main outside sources of
  candidates.
• 3. Effectively recruit job candidates.

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After Studying this materials, We should be able
to such as (continued)

• 4. Name and describe the main internal sources
  of candidates.
• 5. Explain how to recruit a more diverse
  workforce.

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Questions?

• How many staff do we have/need?
• How are they distributed?
• What is the age profile?
• How many will leave in each of the next five
  years?
• How many will be required in one year, five
  years, ten years?

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Results?

• The penalties for not being correctly staffed are
  costly.
• Understaffing loses the business economies of
  scale and specialization, orders, customers and
  profits.
• Overstaffing is wasteful and expensive, if
  sustained, and it is costly to eliminate because
  of modern legislation in respect of redundancy
  payments, consultation, minimum periods of
  notice, etc.
• Very importantly, overstaffing reduces the
  competitive efficiency of the business.

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Future Staff?

• Future staffing needs, will derive such as from
• Sales and production forecasts.
• The effects of technological change on task
  needs.
• Variations in the efficiency, productivity,
  flexibility of labor as a result of training,
  work study, organizational change, new
  motivations, etc.

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Future Staff? (continued)

• Future staffing needs will derive from
• (continued)
• Changes in employment practices
• (e.g. use of subcontractors or agency).
• Variations, which respond to new legislation,
  (e.g. payroll taxes, new health and safety
  requirements).
• Changes in government policies
• (investment incentives, regional or trade
  grants, etc.).

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Future Staff (continued)

• Planning staff levels requires that an assessment
  of present and future needs of the organization,
• be compared with present resources and future
  predicted resources.
• Appropriate steps then be planned to bring
  demand and supply into balance.

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• In order to do human resource planning,
• you need to have a sense of both the current
• external environment, and anticipate things that
• may happen in the future in the labor market
• place.

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What Is Human Resource Planning Auditing?

• Human Resource Planning Auditing
• links people management to the organization's
  mission, vision, goals and objectives,
• as well as its strategic plan and budgetary
  resources.
• A key goal of Human Resource Planning
  Auditing is to get the right number of people
  with the right skills, experience and
  competencies in the right jobs at the right time
  at the right cost.

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Question!

• Is Human Resource Planning Auditing
• only relevant to large companies or should
• small businesses do Human Resource
• Planning Auditing too?

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• Many people associate Human Resource Planning
  Auditing with what very large companies do such
  as Astra.
• That's because, almost by necessity, large
  companies need to have a much more formal and
  comprehensive approach to Human Resource Planning
  Auditing because of their size and the
  complexity of their businesses.

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• Business owner with a very few employees need to
  think (that is, plan) about various personnel and
  human resources issues.
• Many small business owners do this without
  really thinking about
• it.
• For example, a small business owner needs to
  think and plan about what benefits to offer
• - how to manage growth of staff,
• - how to plan how many staff are needed,
• - how to evaluate employee performance, and
  so on.

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• So, even if you have one or two employees,
• it's useful to "plan like the big boys" regarding
  
• human resource and personnel issues. The
• methods you use may be simpler but you still
• need to do it, so you are prepared.

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What human resource functions need to be
planned?

• Human resource planning refers to the planning of
  
• human resource functions,
• or in other words, planning how human resource
  management will
• be executed
• Recruiting.
• Selecting .
• Hiring.
• Orienting.
• Training and Retraining.
• Motivating.
• Coaching.

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What human resource functions need to be
planned?

• Recognizing Achievements.
• Empowering.
• Communicating.
• Evaluating.
• Promoting.
• Laying off.
• Dismissing.
• So, in effect Human Resource Planning refers to
  the
• development of plans in above areas or in similar
  
• areas.

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Some Ways Of Making Human Resource Planning More
Effective?

• 1. Human Resource Planning needs to be
• linked to the larger business planning or
  strategic
• planning process.
• Human Resource Planning is NOT an end to
  itself, and neither is Human Resource Management
  an end in itself.
• The function is meant to support and enable
  the company to attain its business goals, so as
  such it needs to be linked to and driven by those
  business or strategic goals.

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Some Ways Of Making Human Resource Planning More
Effective? (continued)

• 2. The planning process MUST actively involve
  those stakeholders and customers such as
  managers, executives, even line employees.

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Some Ways Of Making Human Resource Planning More
Effective (continued)?

• 3. Human Resource Planning can't be effective
  without an understanding of the company or
  organization, its managers and employees, its
  mission and issues, etc, and the environment in
  which it works.

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How Is Human Resource Planning Linked To Overall
Strategic planning?

• Since human resources functions and strategies
  are a means to achieve corporate ends, they need
  to be tied to, and driven by the corporate role,
  mission, vision and strategic goals, or else they
  simply end up as processes that add overhead, but
  down increase return.
• The solution is obvious. Human resource
  planning needs to reference the details of the
  overall strategic plan of the organization. In
  effect, it serves the strategic plan.

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Human Resource Planning Auditing(HRPA)

• Used by organization to ensure that the right
  person is in the right job at the right time.
• Involves forecasting the organizations future
  human resource needs and planning for how those
  needs will be met.

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Human Resource Planning Auditing(HRPA)
(continued)

• Includes establishing objectives and then
  developing and implementing programs (such as
  staffing, appraising, compensating, and
  training).
• To ensure that people are available with the
  appropriate characteristics and skills when and
  where the organization needs them.

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Human Resource Planning Auditing(HRPA)
(continued)

• May involve developing and implementing programs
  to improve employee performance,
• or to increase employee satisfaction and
  involvement in order to boost organizational
  productivity, quality, or innovation.

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Human Resource Planning Auditing(HRPA)
(continued)

• Can be used to evaluate the effectiveness of
  ongoing programs and informs planners when
  revisions in their forecasts and programs are
  needed.
• Entails knowing in advance what the staffing
  needs of the organization will be,
• assessing the supply of the relevant employee
  in the organization and labor market, and finding
  ways to fulfill the staffing needs.

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Human Resource Planning Auditing(HRPA)
(continued)

• Successfully HRPA for and handling labor needs
  can thus be a competitive advantage.
• Organization who makes and implements better
  HRPA than others will adjust better to
  environmental changes, and have the most suitable
  workforces.

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The HRPA Processes

• There are three broad keys of HRPA
• 1. Know the strengths and the weaknesses of
• current workforce, both with regard to
  number, skills, etc.
• 2. Have clear strategic plans for the future,
  and ideas of how the current employee fit in that
  plan.
• 3. In the current employee do not fit in any
  way, a plan to alter it to do so.

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The HRPA Processes (continued)

• The steps of the HRPA processes
• 1. Deciding on strategic plans and resultant
  design of the organization.
• There are business plans for the future.

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The HRPA Processes (continued)

• The steps of the HRPA processes
• 2. Out of the strategic plans, determining the
  organizations labor demand needs for both the
  short term and longer terms.
• 3. Assessing the labor supply situation (both
  internal and external supply), and in light of it
  to draw up plans for effectively and continuously
  filling staffing needs.
• 4. Implementing the staffing plans, also
  monitoring and evaluating.

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Projected, Environmental Conditions, Competitive
strategy, Life cycle stage, Industry sector
Asses HR Demand Supply
Develop Objectives
Design Implement Program
Evaluate Outcome
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Strategy, Design HRPA

• To serve as a competitive advantage, the
  acquisition of staff must first and foremost be
  strategic.
• One cannot hire, fire or relocate staff without
  there being a strong link to the core business
  needs.

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Strategy, Design HRPA (continued)

• The objectives and design
• Allow those doing human resource planning to
  know the number and type of employees needed at
  each horizontal and vertical level.

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Forecasting Personnel Needs

• Linking Strategy Employers To Plans

Employers Strategic Plan Diversity? Integrate
vertically? Expand geographically?
Employers Functional Plans
Marketing And Sales Plans
Production Plans
Financial Plans
HR Plans
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Forecasting Personnel Needs

• Linking Strategy HR Plans

HR Plans
Labor Relations Plans
Security And Safety Plans
Personnel Plans
Training And Development Plans
Compensation Plans
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Forecasting Personnel Needs

• Linking Strategy Personnel Plans

Personnel Plans
Personnel Forecast
Recruitment Plans
Employee Selection Plans
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Forecasting Personnel Needs

• Explain the main techniques used in employment
  planning and forecasting.
• Forecasting labor demand arising from strategic
  objectives.

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Forecasting Personnel Needs (continued)

• To fulfill strategic objectives, need to ask
  several questions
• - How many employees are needed to enable
• the strategy and design?
• - Of what type and qualities?
• - Where (in what
• departments/jobs/positions)?

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Forecasting Personnel Needs (continued)

• Demand for labor
• - It is a derived demand.
• - Demand labor is dependent on more
• primary demands.

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Forecasting Personnel Needs (continued)

• Several techniques of forecasting personnel
  needs
• 1. Trend analysis.
• 2. Ratio analysis (Personnel ratios).
• 3. The scatter plot.
• 4. Time series on staffing levels.
• 5. Productivity ratios.
• 6. Regression on leading indicators.

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Forecasting Personnel Needs (continued)

• Trend analysis
• - Study of a firms past employment, needs
  over a period of years
• to predict future needs.
• - Might compute the number of employee at the
  end
• of each of the last five years.
• - Might compute the number of employee in
  each
• group (such as sales, production,
  secretarial, administrative) at
• the end of each those years.

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Forecasting Personnel Needs (continued)

• Trend analysis (continued)
• - Provide an initial estimate, but employment
  
• level rarely depend just on the passage of
• time.

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Forecasting Personnel Needs (continued)

• Ratio analysis (continued)
• A forecasting technique for determining future
  staff needs, by using ratios between.
• For example sales volume and the number of
  employees needed.
• - assumes the productivity remains about the
• same.

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Forecasting Personnel Needs (continued)

• Ratio analysis (continued)
• Example
• Suppose a sales person traditionally generates
  Rp. 5 000 000 in sales.
• If the sales revenue to sales people ratio
  remains the same, you would require 6 new sales
  people next year to produce a hoped for extra Rp
  30 000 000 in sales.

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Forecasting Personnel Needs (continued)

• The scatter plot
• A graphically method used to help identify
  the relationship between two variables.

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Forecasting Personnel Needs (continued)

• The scatter plot (continued)
• Example
• Assume a 500 bed hospital expects to expand
  to 1200 beds over the next 5 years.
• The director of nursing and the human
  resource director want to forecast the
  requirement for registered nurses.
• The human resource director decides to
  determine the relationship between size of
  hospital (in terms of number of beds) and number
  of nurses required. She calls 8 hospitals of
  various size and gets the following figures

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Forecasting Personnel Needs (continued)

• The scatter plot (continued)
• Size of Hospital Number Of Regsitered
• (Number of Beds) Nurses
• 200
  240
• 300
  260
• 400
  470
• 500
  500
• 600
  620
• 700
  660
• 800
  820
• 900
  860

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Forecasting Personnel Needs (continued)

• The scatter plot (continued)

Number Of Registered Nurses
Hospital Size (No. of Beds)
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Forecasting Personnel Needs (continued)

• Time series on staffing levels
• - The past trends of staffing are
  extrapolated
• to the future.
• - Time series takes into account past
  cycles,
• seasonal ups and downs, and long term
• trends.

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Forecasting Personnel Needs (continued)

• Productivity ratios
• - Look at the number of people required to
• deal with different levels of workload.
• P W / N
• P productivity ratio
• W workload
• N number of staff

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Forecasting Personnel Needs (continued)

• Productivity ratios (continued)
• P 0.5 (2 staff members for every unit of
• work)
• If workload drops by 0.2 (20) then staffing
  must drop by 0.4 (40).

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Forecasting Personnel Needs (continued)

• Regression on leading indicator

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Forecasting The Supply Of Inside And Outside
Candidates

• Some steps in assessing, such as
• Asses what human resource capabilities
• currently exist in the organization to
  fulfill needs.
• In light of this, assess how adequately the
  current workforce supplies needs
• (is there shortage or surplus of the right
  kind of staff based on forecasted demand?)

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Forecasting The Supply Of Inside And Outside
Candidates (continued)

• Some steps in assessing, such as (continued)
• Therefore, asses what changes need to be made to
  perfect the human resource supply
• (strategic staffing goals and plans do we
  hire?/downsize?/relocate?).

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Forecasting The Supply Of Inside And Outside
Candidates (continued)

• Manual systems and replacement charts
• - Use a personnel inventory and
• development record form compiles
• qualification information on each
• employee.

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Forecasting The Supply Of Inside And Outside
Candidates (continued)
Division Vice President
Vice President Production, Amir Hamzah a,
f Required development none recommended
Vice President Finance, Laris Sagala d,
h Required development none recommended
Vice President Sales, Rudi Suhartono s,
g Required development job rotation into finance
and production
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Forecasting The Supply Of Inside And Outside
Candidates (continued)

• a present performance outstanding
• b present performance satisfactory
• d present performance needs improvement
• f promotion potential ready now
• g promotion potential needs further training
• h promotion potential questionable

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Forecasting The Supply Of Inside And Outside
Candidates (continued)

• Forecasting the supply outside candidates
• If there wont be enough inside candidates to
  fill the anticipated openings.

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Organizational Supply Capabilities

• The step looks at current people and skill.
• There are should several readily available
  information sources
• - Skill inventory
• -- A register of current human resource
• capabilities.
• -- Incorporating information on each
• employees skills, demographic, test
• scores, etc.
• - Management inventory
• -- tailored to management.
• -- subjective assessments of ability.

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Organizational Supply Capabilities (continued)

• Various ways to forecast the supply of future
• people/skills
• 1. Markov analysis
• - Uses historical flow rates of workforce to
  
• predict future rates.
• - Just looking at the current internal
  supply,
• not external labor market supply.
• - The organization uses its own internal
  workforce
• movements as a proxy for future movements.

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Organizational Supply Capabilities (continued)

• Various ways to forecast the supply of future
• people/skills (continued)
• 2. Replacement planning
• - Short term replacement schedules.
• - Who can replace whom within the
• organizational hierarchy.
• - Useful in predicting internal supply.

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Organizational Supply Capabilities (continued)

• Various ways to forecast the supply of future
• people/skills (continued)
• 3. Succession planning
• - A longer term career development
• approach.
• - Effectively earmark employees for
• development through the hierarchy.
• - Long term internal supply situation.

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Organizational Supply Capabilities (continued)

• Various ways to forecast the supply of future
• people/skills (continued)
• 4. Vacancy analysis
• - Essentially Markov analysis based on
• judgment instead of history.

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Assessing Adequacy Of Current Staff

• Once one has assessed the current or future
  workforce capabilities,
• one needs to assess those capabilities
  against
• demand
• There are 3 possibilities
• 1. Too few people/skills
• (shortage-we need to add).
• 2. Too many people/skills
• (surplus-need to remove employees).

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Assessing Adequacy Of Current Staff (continued)

• 3. Need to reduce some staff and hire others
• (possible the number of people remain
• the same, but type/quality will have
• changed).
• - Involves skills (not numerical)
  deficiencies.
• - Current staff lack necessary skills and
• cannot be trained, replacing them with
  adequately
• skilled staff.

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Employment Planning And Forecasting
Recruiting Build A Pool Of Candidates
Candidates
Applicants Complete Application Form
Supervisors And Other Interview Final Candidates
To Make Final Choice
Use Selection Tools Like Test To Screen Out Most
Applicants
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Effective Recruiting

• Develop an applicant pool.
• The more applicants, the more selective in
  hiring.
• The recruitment efforts should make sense in
  terms of the companys strategic plans.

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Organizing The Recruitment Function

• 1. Conduct all recruiting from central
  recruitment officer.
• - Easier to apply the companys strategic
• priorities.
• - It reduces duplication (having several
• recruitment offices instead of one).
• 2. Conduct all recruiting from decentralize
  recruitment officer.

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Measuring Recruiting Effectiveness

• What to measure? And how to measure it?
• What to measure?
• - How many applicants did we generate
• through each of our recruitment sources?

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Selection Devices That Could Be Used To Initially
Screen Applicants
Selection Device Validity For Predicting Job Performance
Construct
General mental ability tests 0.51
Conscientiousness tests 0.31
Integrity tests 0.41
Method
Work sample tests 0.54
Job knowledge tests 0.48
Structured interviews 0.51
Biographical data 0.35
Grade point average 0.23
Rating of training and experience 0.11
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The Recruiting Yield Pyramid

• Some employers use a recruiting yield pyramid to
  calculate the number of applicants they must
  generate to hire the required number of new
  employee.

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Case1

• Finding people who are passionate about what
• they do
• Trilogy Software, Inc., of Austin, Texas, is a
  fast
• growing software company, with earning in the
• 100 million to 200 million range.
• It prides itself on its unique and unorthodox
  culture.
• Many of its approach to business practice are
  unusual,
• but in Trilogys fast changing and highly
  competitive
• environment they seem to work.

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Case1 (continued)

• There is no dress code and employee make
• their own hours, often very long. They tend to
• socialize together (the average age is 26), both
• in the offices well stocked kitchen and on
• company sponsored events and trips to places
• like local dance clubs and retreats in Las Vegas
• and Hawaii.

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Case1 (continued)

• An in house jargon has developed, and the
• shared history of the eight year old firm has
• taken on the status of legend.
• Responsibility is heavy and comes clearly, with
• just do it now attitude that dispense with long
  
• apprenticeships.
• New recruits are given a few weeks of intensive
  training, known as
• Trilogy University and described by participants
  as more like boot
• camp than business school.

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Case1 (continued)

• Information is delivered as if with fire hose,
  and new
• employees are expected to commit to their
  expertise
• and vitality to everything they do.
• Jeff Daniel, a director of college recruiting,
  admits the
• intense and unconventional firm is not the
  employer for
• everybody. But its definitely an environment
  where
• people who are passionate about what they do can
• thrive.

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Case1 (continued)

• The firm employs about 700 such passionate
  people.
• Trilogys managers know the rapid growth they
  seek depends on
• having a staff of the best people they can find,
  quickly trained and
• given broad responsibility and freedom as soon as
  possible.
• Founder and CEO Joe Liemandt says At a software
  company,
• people are everything. You cannot build the next
  great software
• company, which is what we are trying to do here,
  unless You are
• totally committed to that. Of course, the
  leaders at ever company
• say People are everything, but they do not act
  on it.

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Case1 (continued)

• Trilogy makes finding the right people (it calls
• them great people) a company wide mission.
• Recruiters actively pursue the freshest, if least
  
• experienced, people in the job market, scouring
• college career fairs and computer science
• departments for talented overachievers with
• ambition and entrepreneurial instincts.

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Case1 (continued)

• Top managers conduct the first rounds of
  interviews,
• letting prospects know they will be pushed to
  achieve
• but will be well rawarded.
• Employees take top recruits and their significant
  others
• out on the town when they fly into Austin for the
  
• standard, three day preliminary visit. Atypical
  day
• might begin with grueling interviews but end with
  
• mountain biking, roller blading, or laser tag.
• Executives have been known to fly out to meet and
  
• woo hot prospects who could not make the trip.

84
Case1 (continued)

• One year, Trilogy reviewed 15 000 resumes,
• conducted 4000 on campus interviews, flew
• 850 prospects in for interviews, and hired 262
• college graduates, who account for over a third
• of its current employees. The cost per hire was
• 13 000, Jeff Daniel believes it was worth
• every penny.

85
Case1 (continued)

• Questions
• 1. Identify some of the established recruiting
  techniques that underlie Trilogys unconventional
  approach to attracting talent.
• 2. What particular elements of Trilogys culture
  most likely appeal to the kind of employees it
  seeks? How does it convey those elements to job
  prospects?

86
Case1 (continued)

• Questions
• 3. Would Trilogy be an appealing employer for
  you? Why or why not? If not, what would it take
  for you to accept a job offer from Trilogy?
• 4. What suggestions would you make to Trilogy
  for improving its recruiting process?

87
Case2

• Carter Cleaning Company
• Getting Better Applicants
• If you were to ask Jennifer and her father what
• the main problem was in running their firm, their
  
• answer would be quick and short hiring good
• people.

88
Case2 (continued)

• Originally begun as a string of coin operated
• laundromats requiring virtually no skilled help,
  the
• chain grew to six stores, each heavily dependent
  on
• skilled managers, cleaner-spotters, and pressers.
  
• Employees generally have no more than a high
  school
• education (often less), and the market for them
  is very
• competitive. Over a typical weekend literally
  dozens of
• want ads for experienced pressers or
  cleaner-spotters
• can be found in area newspaper.

89
Case2 (continued)

• All these people are usually paid around 15
• per hour, and they change jobs frequently.
• Jennifer and her father are thus faced with the
• continuing task of recruiting and hiring
  qualified
• workers out of a pool of individuals they feel
  are
• almost nomadic in their propensity to move
• from area to area and job to job.

90
Case2 (continued)

• Turnover in their stores (as in the stores of
• many of their competitors) are often
• approaches 40. Do not talk to me about
• human resources planning and trend analysis
• says Jennifer. We are fighting an economic
• war and I am happy just to be able to round up
• enough live applicants to be able to keep my
• trenches fully manned.

91
Case2 (continued)

• In light of this problem, Jennifers father asked
  
• her to answer the following questions
• 1. How would you recommend we go about reducing
  the turnover in our stores?
• 2. Provide a detailed list of recommendations
  concerning how we should go about increasing our
  pool of acceptable job applicants so we are no
  longer faced with the need of hiring almost
  anyone who walks in the door.

92
References

• Dessler, G. 2005. Human Resource
• Management. Pearson Education, Inc. New Jersey.
• Jackson, S.E. and Randall S.S. 1990. Human
  Resource Planning Challenges For
  Industrial/Organizational Psychologists.
  American Psychologist February 1990.
• Millmore, M Philips, L Mark, S Adrian, T.
  Trevor, M. 2007. Strategic Human Resource
  Management Contemporary Issues. Pearson
  Education Limited.